Americas News
Tesoro Sells Hawaiian Refinery
U.S. refiner Tesoro Corporation [NYSE:TSO] (Tesoro) says it has agreed to sell its Hawaiian operation to a subsidiary of U.S. energy company Par Petroleum Corporation (Par Petroleum) in a deal worth up to $390 million.
"We are pleased to have reached this positive outcome for the Company," said Greg Goff, President and CEO. "While the Hawaii operations do not align with our strategic focus, we believe they offer a great opportunity for Par Petroleum."
The sale includes the 94,000 barrel per day (bpd) Kapolei refinery, retail stations, and logistical assets, which Par Petroleum will continue operating.
Tesoro operates six refineries in the Western U.S. with a total capacity of more than 845,000 bpd, along with more than 2,200 retail stations.
Par Petroleum manages and owns energy assets including natural gas resources in the Piceance Basin in Colorado and the Port Arguello offshore unit in California, according to its website.
The sale of the Hawaiian business includes $75 million plus the market value of net working capital, estimated at between $225 million and $275 million, as well as an earn-out arrangement of up to $40 million payable over three years depending on consolidated gross margins.
The news of the sale came as a relief to workers and other people in the local area who had been concerned about the fate of the refinery, Hawaiian television station KHON 2 reports.
"Morale is very, very low," said Tesoro Hawaii employee Jason Skamoto.
"I'm sure with today's announcement it's gone 180 and everybody's very, very happy,"
